As professional Alabama rental managers, we at gkhouses.com are in the business of helping not just our owners, but our tenants. That means helping them protect what they own, which inevitably creates a need for renter’s insurance. But renter’s insurance can be confusing at times, which can lead to an outcome we don’t want for our tenants: not having enough insurance to cover their losses in the event of a disaster. When obtaining renter’s insurance for your rental home in Alabama, here are a few tips you should take into consideration. Obtain a Valuable Item Rider A basic renter’s insurance policy more than likely won’t fully cover everything you own – especially your valuables. When we talk about valuables, we are mainly talking about specific, high-value items that need special protection above and beyond the basic coverage options for most policies. These items include:

Jewelry

Heirloom items

Musical instruments

Works of art

High-value electronics

Stamps or other collections

Firearms

High-value sports equipment and vehicles

This rider is important because these items, and others like them, are typically limited in standard policies. Don’t Ignore Your Clothes Another overlooked thing about renter’s insurance is the value of your clothing. A lot of tenants have a tendency to undervalue their clothing and other mundane items when determining how much coverage they need. According to some experts, though, many people have $2,000 to $3,000 worth of clothes – especially since the average person spent $700 in 2010 at clothing stores. Once a year, evaluate how much your wardrobe is worth. Check for replacement value – how much would it cost you to buy that same item (or one similar to it) today? You Probably Need Insurance Finally, one of the biggest misconceptions about renter’s insurance is that you don’t need it. People constantly undervalue how much they actually own. Take your typical renter in a two-bedroom apartment. They own approximately $30,000 worth of possessions on average – more than enough for a good insurance policy. You won’t know how much you have until you go through and inventory your belongings from floor to ceiling. Figure out the worth and then you’ll be able to see how necessary a policy is for your rental home. Contact us if you need more help with protecting your assets and making the most of your rental experience.